Mich. Bills Would Up Insurers' Bad Faith Penalties

Law360, New York (July 13, 2009, 12:00 AM EDT) -- Michigan state lawmakers have unveiled a package of bills that would toughen penalties against insurers who wrongfully deny or delay consumers' legitimate automotive, property or health care claims.

The package, announced Monday by Democrats in the state's House of Representatives, includes 12 bills that would enforce penalties including a $1 million fine on insurance companies that deny legitimate consumer claims and require insurers to repair a consumer's credit rating when it has been harmed by a wrongful delay or denial of coverage.

Other bills would increase...
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